Sempra Energy strikes LNG supply deal with Polish Oil & Gas

Sempra Energy strikes LNG supply deal with Polish Oil & Gas

Sempra Energy said on Monday it would sell three million tonnes of liquefied natural gas each year to Polish Oil & Gas Co , in another sign of rising interest in U.S. supplies following Russia’s invasion of Ukraine.

Buyers wary of importing natural gas from sanctions-hit Russia have been turning to U.S. LNG in recent months as the war in Ukraine tightens an already under-supplied market.

The United States is this year expected to surpass Australia and Qatar as the world’s largest LNG exporter, delivering more than 12.2 billion cubic feet per day.

Sempra will provide Polish Oil & Gas with LNG for 20 years under the deal. About 2 two million tonnes of liquefied natural gas per annum of that would come from Sempra’s Cameron LNG Phase 2 project in Louisiana, while the rest would come from the Port Arthur LNG project in Texas.

Polish Oil & Gas will also have the option in 2022 to reallocate volumes from the Cameron Phase 2 project to the Port Arthur project, Sempra said in a statement.

Published: 16-05-2022